CAD/JPY Price Recap
The choppiness in the recent daily price action of CAD/JPY continues; to start today, it comes in at a price of 74.386 US dollars, down 142 pips (1.87%) since yesterday. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 5.83% from the day prior, and up 51.1% from the same day the week before. Out of the 40 instruments in the Forex asset class, CAD/JPY ended up ranking 30th for the day in terms of day-over-day price change. Here is a price chart of CAD/JPY.
CAD/JPY Technical Analysis
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 20 day average, which is 492.2 pips away. Something to pay attention to: CAD/JPY’s momentum/trend on a 14 day basis may be decelerating. Trend traders will want to observe that the strongest trend appears on the 30 day horizon; over that time period, price has been moving down. Or to simplify this another way, note that out of the past 14 days CAD/JPY’s price has gone down 9 them.
The View From Around the Web
Of note is that traders in aggregate have opinions on CADJPY, with 14 buy signals on our radar and 11 sell signals. This imputes a buy/sell ratio of 1.27, which is bullish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.
As CADJPY has broken channel support and approaches monthly support, we are anticipating a relief bullish rally to retest the broken support as what will now be resistance before push to the downside….This is a monthly view so this could take some time for the H&S rule to play out….Should price break below the neckline before pushing up to test the broken channel as resistance, we will wait for a retest of the neckline and wait for a rejection from this zone to continue the move down, on the lower time frame however, should price reject from the current support, we will look for short term buy opportunities, before engaging in the long term short.